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TMI Blog2024 (6) TMI 1328X X X X Extracts X X X X X X X X Extracts X X X X ..... al School Foundation, Philippines. It is noted that Schedule 3 issued under Section 13 of Indian Medical Council Act, 1956 in its Part II has included MD degree offered by Davos Medical School Foundation, Philippines as recognized medical qualification under Section 13 of Indian Medical Council Act, 1956. It is also undisputed fact that the appellant is not receiving any consideration from any other source than the tuition fee collected from the students enrolled for BS course. During the entire period of dispute if a service is provided in respect of education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force, then such service either did not attract service tax under negative list till 14.05.2016 or was exempted from payment of service tax under Notification No.25/2012-ST dated 20.06.2012 under Entry No.9 with effect from 14.05.2016. The appellant was providing educational service for a course called BS which was pre-requisite for a course for MD and MD qualification is recognized by Indian Medical Council Act, 1956. It is noted that in the relied upon interim order in the case of ITM INTERNATIONAL PVT LTD VERSUS CST, DELHI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course leading to MD (Doctor of Medicine equivalent to MBBS in India). The BS course conducted by the appellant was preparatory course for a period of one year and four months wherein the students underwent the said course partly in Pune at the campus of the appellant and partly in other colleges in Philippines like Brokenshire College, San Pedro College and then were admitted for MD course in DMSF. For the course conducted partly in Pune by the appellant, Green Heard Medical University, Guyana was issuing cumulative transcript of courses and grades and based on such transcript, students further underwent part of BS course in the said colleges in Philippiness and after completion of entre BS course, the students were issued BS Certificate by universities and subsequently were eligible to pursue MD programme in DMSF, Philippines. Appellant used to collect tuition fee from the students when enrolled for BS course in Pune. Revenue conducted investigation against the appellant and collected some documents and recorded few statements. Statement of Shri Bhaskar Isaac, Vice President, Administration of the appellant, statement of Shri David K. Pillai, Chairman of the appellant were record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave contested the claim of Revenue that the educational service offered by the appellant is not recognized by Indian law. In respect of the said contention in the said show cause notice, appellant has submitted that the degree of BS leading to degree of MD awarded by DMSF is an approved course and is covered under the negative list given under Section 66B of Finance Act, 1994 and is exempted under Entry No.9 of Notification No.25/2012-ST dated 20.06.2012. They have also stated that the courses mentioned are recognized by Indian Medical Council Act, 1956 which has provided for constitution of Medical Council of India and that Medical Council of India regulates standards of medical education, permission to start colleges, courses, registration of doctors and standards of proficiency of conduct of medical practitioners. They further stated that Part II of the Third Schedule under Section 13 of Indian Medical Council Act, 1956 lists all the medical qualifications granted by medical institutions outside India and MD degree conferred by DMSF is included in the said list. They, therefore, contested that the course conducted by the appellant leading to BS degree which is the pre-requisite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in enrolling students who could be prepared for admission to MD degree course in DMSF in Philippines and the pre-requisite course of awarding the qualification as BS is conducted by the appellant. He has stated that BS course is actually related to pre-clinical and para-clinical subjects as per the syllabus of MBBS courses in India. He has submitted that the original authority has accepted the fact that unless a BS certificate is obtained, a student will not get admission in MD. All the students who enrolled in BS in the institute of the appellant got MD degree and are practicing as medical practitioners. He has further submitted that the subjects which are taught to the students by the appellant are also specified under Graduate Medical Education, 1997 promulgated by Medical Council of India. He has submitted that connotation curriculum covers syllabus, course and training. The word curriculum is a Latin word which means courses of study offered in specialized field as per the Webster Dictionary. The National Curriculum Framework for School Education, 2023 published by NCERT describes curriculum as curriculum refers to the entirety of the organized experience of students in any in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R who has supported the impugned order. Further, learned AR has pointed out that the appellant had collected charges from students separately for arranging visa and air tickets for travel to Philippines. 6. Learned counsel for the appellant has submitted a written submission subsequent to the hearing. The said written submission is dated 30.04.2024, which is reproduced as follows:- 1. The investigation against the Appellant was instituted by the DGGI, Chennai Zonal Unit, Chennai whereunder it is alleged that the Appellant is enrolling students for BS (Bachelor of Science, a Pre-Medicine Course) and M.D. (Doctor of Medicine, equivalent to MBBS in India) in collaboration with the foreign Universities or colleges. The part of B.S. Course is partly performed in India at the campus of the Appellant and partly at abroad colleges/universities. It is an undisputed fact that the M.D. Degree granted by the foreign university is recognized by the Indian Medical Council under Part-II of Third Schedule of Section 13 of the Medical Council Act, 1956. The point of dispute is that the M.D. Degree, which is granted by the Davos Medical School Foundation and not the Appellant itself. Further it is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide Notification No. 9/2016-S.T., dated 1-3- 2016 w.e.f. 14-5-2016, with: (oa) educational institution means an institution providing services by way of (i) pre-school education and education up to higher secondary school or equivalent; ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; (iii) education as a part of an approved vocational education course; From the above legal position it is amply clear that education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force always remain exempted from payment of service tax. W.e.f. 01/07/2012, this entry falls under Negative list of Service as defined under Section 66D of the Finance Act 1994. From 11/07/2014 through Notification 06/2014 it falls under exemption Notification. The Notification No 10/2017 dated 08/03/2017 also maintains exemption to this particular entry education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force . From going through the Section 66D exemption Notification No 25/2012-St, it is obvious that this specific activity always remains e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr Ranjan Khanna, ld AR on behalf of the Revenue. I have perused the appeal records, Including written submissions and various case laws relied upon by both the sides. 4. The Member (Technical) held that the appellants do not issue degree or diploma recognized by law. As such, he held them liable for service tax, holding that they are covered by the definition of Commercial Training or Coaching Centre in terms of Section 65(27) of the Finance Act, 1994. Ld Member (Judicial) held that the course provided by the appellant resulted in the issue of degree by the University of London (London School of Economics) which is recognized by law in India. She relied on various communications of UGC and AIU to hold that the degree which was issued, on completion of course is recognized as equivalent to degree issued by Indian Universities or Institutions. Reliance was also placed on the decision of the Commissioner (Appeals) order dated 30.01.2014 wherein it was held that the course offered by the appellant are recognized by law in India and as such the appellants would not fall within the ambit of Commercial Training or Coaching Centre. Regarding Business English Course and Personality Develop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch are recognized/equated by Association of Indian Universities are treated as recognized for the purpose of employment to posts and services under the Central Government. No separate orders for recognition of such foreign qualification is needed to be issued. Here it is relevant to note that UGC had advised the Indian students to ascertain information regarding equivalence of the degrees and diplomas awarded by accredited Universities abroad. The degree/diploma programmes offered by the appellant resulting in the issue of certificate by the University of London (LSE) which is treated as equivalent to degree or diploma of public Universities in India. As such, I find that the appellants will fall outside the scope of definition for commercial training or coaching centre. It may be noted here that even the impugned order indicated that the certificate and diplomas issued by LSE are recognized by all the national universities. However, the adjudicating authority did not consider his own finding as relevant and followed the Board circular which refers to the recognition by statutory authorities like UGC etc. 8. It is relevant to note here that the department has been taking consistent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given by appellant which is relevant to decide the exemption under notification. Neither the tax entry nor the exemption notifications are having reference to any point of discussion which formed basis for the conclusion drawn by the impugned order. We find that the impugned order was misdirected when examining the legal issue. Accordingly, same is set-aside. 9. In view of the above discussion, I find that the demand for Service Tax against the appellants, not sustainable and accordingly I agree with the Member (Judicial). 7. We have carefully gone through the record of the case, submissions made during the hearing and written submissions submitted on 30.04.2024 after the hearing was completed, along with relied upon interim order of this Tribunal in the case of ITM International (P) Ltd. (supra). The issue to be decided in this appeal by us is whether the educational services rendered by the appellant to the students undertaking the course of BS is chargeable to service tax or not. We note that it is undisputed fact that the appellant is engaged in providing educational service to students who have enrolled for BS course with the appellant and the appellant has collected tuition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2012-ST dated 20.06.2012 under Entry No.9 with effect from 14.05.2016. As can be seen from the foregoing paragraphs, appellant was providing educational service for a course called BS which was pre-requisite for a course for MD and MD qualification is recognized by Indian Medical Council Act, 1956. We note that in the relied upon interim order in the case of ITM International (P) Ltd. reported at 2017 (5) GSTL 176 (Tri.-Del.), the third Member to whom the matter was referred has clarified in para 5 that degrees and diplomas are issued by universities and the colleges affiliated to such universities provided educational service and such colleges who themselves are not issuing degree certificate are not being subjected to levy of service tax. In similar manner, here the degree of MD which is the qualification recognized by Indian Medical Council Act, 1956 is awarded and a part of the said qualification requires study of BS course which is provided by the present appellant. Therefore, we hold that the educational service provided by the present appellant is a part of a curriculum for obtaining MD qualification which is recognized by law for the time being in force. We, therefore, hold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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